Monthly budgets and proposals
What a funded team can spend without asking, and what needs a market's permission.
A funded raise does not hand a founder a bank transfer. It creates a owned by the project, and gives the team a standing allowance to draw against. Everything else has to be argued for in public.
Where the raised money goes at close
The amount the project receives is split at settlement. A portion seeds a so the token can be traded at all, and the rest lands in the treasury as working capital.
| What | Amount |
|---|---|
| Project treasury (working capital) | 80% of raised |
| Liquidity pool (paired with tokens) | 20% of raised |
This matters when you evaluate runway. A $150,000 raise with a $8,000 monthly budget is not nineteen months of runway; it is roughly fifteen, because the treasury is $120,000.
The monthly budget
Before a raise opens, the founder publishes a . After funding, that number is a ceiling enforced by the program: the team can withdraw up to it each month for salaries, rent, infrastructure, contractors — whatever running the project requires — and cannot withdraw more, regardless of what the treasury holds.
Nobody reviews the individual spends. The point is not to supervise the team's coffee budget; it is to make the maximum loss from a bad or dishonest team bounded and slow, and to make the size of that bound public before you commit a cent.
What needs a proposal
Anything that reaches past the allowance goes to a public proposal:
- A one-off spend larger than the monthly budget — an acquisition, a big contract, a marketing push.
- Raising the monthly budget itself.
- Minting new tokens, which would dilute existing holders.
- Selling or licensing assets the entity holds, including the brand and the IP.
- Changing the governance parameters that enforce all of the above.
A is not decided by the founder, by Backable, or by a token-holder vote. It is decided by a : traders take positions on whether the proposal makes the token more or less valuable, and the market's answer executes automatically.
What it looks like when a team gives up
If a funded team stops working, they keep whatever budget they already drew and nothing else. The treasury, the entity, the IP and the brand remain with the project, and the remaining funds can be redeployed — or returned to holders — through a proposal. That is the practical worst case for a backer of a funded raise: you lose the months of budget that were spent, not the whole treasury.